MultiChoice considers the Canal+ deal, it is also ramping up its investment in its streaming platform, Showmax, which it launched in 2015.
The company announced that it will inject an additional US$89 million into Showmax by March 31, 2024, as part of a US$129 million funding round by MultiChoice and NBCUniversal, which owns a 30% stake in Showmax.
The two have already invested US$20 million into the platform, which offers both live and on-demand content.
Showmax receives monthly or periodic equity funding from MultiChoice, up to a cap with the first investment of US$30 million due on February 2, 2024,
It also aims to position Showmax as Africa’s leading streaming service and plans to relaunch the platform later this month.
The relaunch will include partnerships to expand its content library and enhance its technology. Some of the proposed offerings include an English Premier League-exclusive package, data-saving streaming bundles, and content from NBCUniversal’s subsidiaries, such as SKY and HBO.
Showmax is also betting big on local content, as it has been producing and acquiring original and exclusive shows and movies from across the continent, such as Tali’s Wedding Diary, The River and The Girl from St. Agnes.
These developments indicate that MultiChoice is not giving up on its streaming ambitions and that it is ready to take on the global players, such as Netflix and Disney+, who are also eyeing the African market.
They also signal a positive outlook for the African streaming industry, where demand for streaming services and local content has been growing over the past few years.
However, the African streaming market also faces some challenges, such as low internet penetration, high data costs in some markets, piracy, and regulatory uncertainty.
These factors could affect the profitability and sustainability of the streaming players, especially as competition intensifies.
